Bagalkot Udyog Ltd. कंपली की लेखा नीति

Mar 31, 2012

I. Method of accounting

the Company follows mercantile system of accounting. All items of income and expenditure are accounted for as and when accrued.

II. Revenue Recognition

Income is recognised on accrual basis.

III. Depreciation

Depreciation is provided on Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

IV. Fixed Assets

Fixed Assets are stated at their cost less depreciation. Cost includes all other expenditure incurred to bring the assets into existence for their intended use and cost of borrowings specifically taken for the respective assets upto the date of commissioning.

V. Taxation

Current year tax is determined in accordance with Income Tax Act, 1961 at the Current Tax rates based on assessable income.

The Company has carried forward losses under Tax Laws. In absence of virtual certainty of sufficient future taxable income, deferred tax asset has not been recognized in accordance with Accounting Standard 22ND Accounting for taxes on income issued by The Institute of Chartered Accountants of India.

VI. Impairment of Assets

At each balance sheet date, the carrying amounts of fixed assets are reviewed by the management to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an asset's net selling price and value in use.

VII. Provisions, contingent liabilities and contingent assets

A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized in the financial statements. A contingent asset is neither recognized nor disclosed in the financial statements.

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Mar 31, 2010

I. Method of accounting

The Company follows mercantile system of accounting. All items of income and expenditure are accounted for as and when accrued.

II. Revenue Recognition

Income is recognised on accrual basis.

III. Depreciation

Depreciation is provided on Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

IV. Fixed Assets

Fixed Assets are stated at their cost less depreciation. Cost includes all other expenditure incurred to bring the assets into existence for their intended use and cost of borrowings specifically taken for the respective assets upto the date of commissioning.

V. Taxation

Current year tax is determined in accordance with Income Tax Act, 1961 at the Current Tax rates based on assessable income.

The Company has carried forward losses under Tax Laws. In absence of virtual certainty of sufficient future taxable income, deferred tax asset has not been recognized in accordance with Accounting Standard 22 " Accounting for taxes on income" issued by The Institute of Chartered Accountants of India.

VI. Impairment of Assets

At each balance sheet date, the carrying amounts of fixed assets are reviewed by the management to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an assets net selling price and value in use.

VII. Provisions, contingent liabilities and contingent assets

A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized in the financial statements. A contingent asset is neither recognized nor disclosed in the financial statements.